Capital values decreased 0.5 percent across all UK commercial property in July 2022, according to the latest CBRE Monthly Index. Over the month, rental value growth was 0.3 percent. Total returns were -0.1 percent. In July, capital values for the office sector decreased 0.1 percent. Capital value growth was pulled down by Outer London and M25 offices and offices in the rest of the UK both reporting a decline of 0.3 percent. Central London offices posted a capital value growth of 0.1 percent. Rental values for the office sector increased 0.1 percent in July. Rental growth was driven by Outer London and M25 offices (0.4 percent) and rest of UK offices (0.3 percent). In July, total returns for the office sector were 0.4 percent. More →

The UK’s commercial real estate market is entering or might already be in a downturn, according to an industry survey from the Royal Institute of Chartered Surveyors. As higher interest rates push up investors’ financing costs and economic sentiment takes a dive, 43 percent of respondents to its quarterly commercial property survey thought the sector was in the early stages of a downturn, and a further 10 percent thought it was in the middle of one. By contrast, three months ago 53 percent said the sector was in the early or middle stages of an upturn, a proportion that has now slumped to 22 percent. More →

An analysis by Savills of Q2 2022 Prime Office Costs (SPOC) in global markets around the world suggests that inflation and supply chain issues are now feeding into office fit-out costs and keeping occupiers’ net effective costs high in many cities around the world. Over the past year office fit-out costs have risen an average of 6 percent across the SPOC cities that have so far reported rises says Savills, although proportionally they remain a small part of overall costs compared to rents. More →

Europe is leading the way on real estate transparency as a raft of new sustainability legislation raises industry standards, according to the latest Global Real Estate Transparency Index [registration] published by JLL, in partnership with LaSalle. Six of the 12 countries classed as ‘Highly Transparent’ in the report are in Europe with France, the Netherlands, Germany and Belgium among the most improved, joining Ireland and Sweden. More →

Lord Michael Bichard has published the Bichard RICS Review into the Institution’s Purpose, Governance and Strategy, which RICS Governing Council commissioned last December. The review was a key recommendation of Alison Levitt QC’s critical report into historic issues at RICS, which was published last September. RICS Governing Council said it ‘strongly endorses’ the report and recommendations, which were informed by a global stakeholder consultation process, and will now commence work on their practical implementation. Lord Bichard states in his report that the future success of the organisation “will require nothing less than a transformation of the Institution carried out at pace” and described the need for change as “urgent” and “unarguable”. More →